Lumentum (NASDAQ:LITE) Trading 10.8% Higher – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price shot up 10.8% during trading on Tuesday . The company traded as high as $363.13 and last traded at $368.1910. 1,087,420 shares were traded during trading, a decline of 74% from the average session volume of 4,224,278 shares. The stock had previously closed at $332.45.

Wall Street Analysts Forecast Growth

LITE has been the topic of several recent analyst reports. Barclays increased their price objective on shares of Lumentum from $181.00 to $365.00 and gave the company an “equal weight” rating in a report on Thursday, January 15th. Wall Street Zen lowered Lumentum from a “buy” rating to a “hold” rating in a report on Saturday, November 1st. Stifel Nicolaus increased their price objective on Lumentum from $220.00 to $400.00 and gave the stock a “buy” rating in a research report on Thursday, January 22nd. Northland Securities set a $350.00 price target on shares of Lumentum in a research report on Wednesday, December 3rd. Finally, JPMorgan Chase & Co. upped their target price on shares of Lumentum from $145.00 to $185.00 and gave the stock an “overweight” rating in a research note on Thursday, October 16th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $285.19.

Lumentum Stock Performance

The company has a current ratio of 1.37, a quick ratio of 1.02 and a debt-to-equity ratio of 2.77. The firm has a market capitalization of $26.03 billion, a price-to-earnings ratio of 246.38 and a beta of 1.51. The stock’s 50 day moving average price is $340.26 and its two-hundred day moving average price is $218.23.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, November 4th. The technology company reported $1.10 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.07. Lumentum had a net margin of 6.11% and a return on equity of 4.62%. The firm had revenue of $533.80 million during the quarter, compared to the consensus estimate of $525.10 million. During the same period last year, the firm posted $0.18 EPS. The firm’s revenue for the quarter was up 58.4% on a year-over-year basis. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. On average, analysts forecast that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Jae Kim sold 170 shares of the company’s stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $246.00, for a total transaction of $41,820.00. Following the completion of the sale, the senior vice president directly owned 38,400 shares of the company’s stock, valued at approximately $9,446,400. This represents a 0.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Julia Suzanne Johnson sold 10,000 shares of the firm’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $270.39, for a total value of $2,703,900.00. Following the sale, the director owned 12,037 shares in the company, valued at approximately $3,254,684.43. The trade was a 45.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 28,612 shares of company stock valued at $7,317,398. 0.43% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

A number of hedge funds and other institutional investors have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership grew its holdings in Lumentum by 8,579.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares in the last quarter. Hood River Capital Management LLC lifted its holdings in Lumentum by 82.1% during the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock worth $209,745,000 after buying an additional 994,551 shares during the last quarter. Norges Bank acquired a new position in shares of Lumentum in the 2nd quarter worth approximately $82,983,000. Assenagon Asset Management S.A. increased its holdings in shares of Lumentum by 707.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock valued at $366,555,000 after acquiring an additional 871,249 shares during the last quarter. Finally, Holocene Advisors LP acquired a new stake in shares of Lumentum during the 3rd quarter valued at approximately $136,401,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.